KKR-Reliance Retail sign pact: Reliance Retail to sell 1.28% stake for INR 5550 crore


Global investment firm KKR will invest INR 5,550 crore into Reliance Retail, a subsidiary of Reliance Industries, as announced today by Reliance Industries Limited and Reliance Retail Ventures Limited.

The investment values Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore, RIL said in an exchange filing today.

Meanwhile, American Buyout firm KKR’s investment will translate into a 1.28% equity stake in RRVL on a fully diluted basis.

This marks the second deal by Reliance Retail in two weeks.

Earlier this month, private equity giant Silver Lake Partners had said that it will invest INR 7,500 crore in Reliance Retail for a 1.75% stake.

This marks the second investment by KKR in a subsidiary of Reliance Industries, following an INR 11,367 crore investment in Jio Platforms announced earlier this year.

Reliance Retail claims that the company sees around 640 million footfalls across its nearly 12,000 stores nationwide.

“I am pleased to welcome KKR as an investor in Reliance Retail Ventures as we continue our onward march to growing and transforming the Indian Retail ecosystem for the benefit of all Indians. KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years. We look forward to working with KKR’s global platform, industry knowledge and operational expertise across our digital services and retail businesses.”

~Mukesh Ambani, Chairman and Managing Director of Reliance Industries

Morgan Stanley acted as financial advisor to Reliance Retail and Deloitte Touche Tohmatsu India LLP acted as financial advisor to KKR for this deal.

“Reliance Retail’s new commerce platform is filling an important need for both consumers and small businesses as more Indian consumers move to shopping online and the company offers tools for Kiranas to be a critical part of the value chain. We are thrilled to support Reliance Retail in its mission to become India’s leading omnichannel retailer and ultimately to build a more inclusive Indian retail economy.”

~Henry Kravis, Co-Founder and Co-CEO of KKR

Founded in 1976, KKR has $222 billion in assets under management as of June 30, 2020.

Reliance Retail operates India’s largest, fastest growing and most profitable retail business, spanning retail stores in over 7,000 towns with 28.7 million sq ft of retail space and serving close to 640 million footfalls.

This latest deal by KKR underlines how the RIL unit is all set to lead a disruptive, technology led transformation of the Indian retail sector.

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